The UK cuts energy bills, taxes banks and boosts defense in high-stakes budget

The U.K.'s finance minister John Healey delivered his first fiscal budget on Wednesday, announcing funding for defense, AI initiatives and measures designed to ease cost-of-living pressures. The Autumn Budget included dozens of measures aimed largely at easing rising costs for Britain's population, but Healey was careful not to risk the ire of markets, which responded broadly positively to his plans. As a net energy importer, the U.K. is vulnerable to external energy shocks. Inflation has risen sharply this year, with surging fuel costs driving the annual inflation rate to 3.5% in September. Markets expect the Bank of England to hike interest rates next month, while government borrowing costs have risen sharply this year. The U.K.